7 Departmental Accounts
Question 1 FGH Ltd. has three departments I.J.K. The following information is provided for the
year ended 31.3.2004:
I J K ` ` ` Opening stock 5,000 8,000 19,000 Opening reserve for unrealised profit ― 2,000
3,000 Materials consumed 16,000 20,000 ― Direct labour 9,000 10,000 ― Closing stock 5,000
20,000 5,000 Sales ― ― 80,000 Area occupied (sq. mtr.) 2,500 1,500 1,000 No. of employees
30 20 10
Stocks of each department are valued at costs to the department concerned. Stocks of I are
transferred to J at cost plus 20% and stocks of J are transferred to K at a gross profit of 20% on
sales. Other common expenses are salaries and staff welfare ` 18,000, rent ` 6,000. Prepare
Departmental Trading, Profit and Loss Account for the year ending 31.3.2004.
(10 Marks, November 2004) (PE II)
Answer
FGH Ltd. Departmental Trading and Profit and Loss Account for the year ended 31st
March, 2004
I J K Total I J K Total
` ` ` ` ` ` ` ` To Opening
stock
5,000 8,000 19,000 32,000 By Sales 80,000 80,000
To To
Material consumed Direct labour Inter-
By Inter- 16,000
20,000
36,000
departmental 9,000
10,000
19,000
transfer
30,000 60,000 90,000 Closing stock
© The Institute of Chartered Accountants of India
Departmental Accounts 7.2
To departmental By 5,000 20,000 5,000 30,000
transfer 30,000 60,000 90,000 To Gross profit 5,000 12,000 6,000 23,000 ______ ______ ______ _______ 35,000
80,000 85,000 2,00,000 35,000 80,000 85,000 2,00,000 To Salaries and
staff welfare 9,000 6,000 3,000 18,000
By By
Gross profit b/d Net loss
5,000 7,000
12,000 6,000 23,000 7,000 To To
Rent Net profit
3,000 _____
1,800 4,200
1,200 1,800
6,000 6,000 _____ _____ _____ _____ 12,000 12,000 6,000 30,000 12,000 12,000 6,000 30,000 To To
Net loss (I) Stock reserve (J+K)
7,000 By Stock reserve b/d (J + K) 5,000
(Refer W.N.) 3,000 By Net profit
(J + K)
6,000
To Balance
transferred to profit and loss account 1,000 _____ 11,000 11,000
Working Note:
Calculation of unrealized profit on closing stock
` Stock reserve of J department Cost 30,000 Transfer from I department 30,000 60,000 Stock of
` 30,000 =`
J department 20,000 Proportion of stock of I department = ` 20,000 × ` 60,000
10,000
Stock reserve =` 10,000 × 120
20 = ` 1,667 (approx.)
Stock reserve of K department
` Stock transferred from J department 5,000 Less: Profit (stock reserve) 5,000 × 20% (1,000)
Cost to J department 4,000
© The Institute of Chartered Accountants of India
7.3 Advanced Accounting
` 30,000 ` 2,000
,000 ×
Proportion of stock of I department = ` 4 ` 60,000 =
Stock reserve = 2,000 × = ` 333 (approx.) Total stock reserve = ` 1,000 + ` 333 = ` 1,333
120 20
Question 2
Goods are transferred from Department P to Department Q at a price 50% above cost. If closing
stock of Department Q is ` 27,000, compute the amount of stock reserve.
(2 Marks, November, 2009)(IPCC)
Answer
Calculation of Stock Reserve
` Closing stock of Department Q 27,000 Goods sent by Department P to Department Q at a
27,000 50
price 50% above cost Hence, profit of Department P included in the stock will be `
150
9,000
,000
Amount of stock reserve will be ` 9
Question 3 Department R sells goods to Department S at a profit of 25% on cost and
Department T at 10% profit on cost. Department S sells goods to R and T at a profit of 15% and
20% on sales respectively. Department T charges 20% and 25% profit on cost to Department R
and S respectively. Department managers are entitled to 10% commission on net profit subject
to unrealized profit on departmental sales being eliminated. Departmental profits after charging
manager’s commission, but before adjustment of unrealized profit are as under:
` Department R 54,000 Department S 40,500 Department T 27,000 Stock lying at different
departments at the end of the year are as under:
Deptt. R Deptt. S Deptt. T ` ` ` Transfer from Department R - 22,500 16,500
© The Institute of Chartered Accountants of India
⎛ │ ⎝ ×
⎞ │ ⎠
Departmental Accounts 7.4
Transfer from Department S 21,000 - 18,000 Transfer from Department T
9,000 7,500 -
Find out the correct departmental profits after charging manager’s
commission.
(8 Marks, November, 2010)
(IPCC)
Answer
Departments R S T ` ` ` Profit 54,000 40,500 27,000 Add : Managerial
commission (1/9) 6,000 4,500 3,000 60,000 45,000 30,000 Less: Unrealised
profit on stock (Refer W.N.) (6,000) (6,750) (3,000) 54,000 38,250 27,000 Less:
Managers’ commission @ 10% (5,400) (3,825) (2,700) 48,600 34,425 24,300
Working Notes: Value of
unrealised profit
` Transfer by
department R to
S department (22,500 ×25/125) = 4,500 T department (16,500
×10/110) = 1,500 6,000 Transfer by department S to
R department (21,000 × 15/100) = 3,150 T department (18,000 ×
20/100) = 3,600 6,750 Transfer by department T to
R department (9,000 × 20/120) = 1,500 S department (7,500
× 25/125) = 1,500 3,000
Question 4
Brahma Limited has three departments and submits the following information for the
year ending on 31st March, 2011:
Particulars A B C Total (`) Purchases (units) 5,000 10,000 15,000 Purchases
(Amount) 8,40,000 Sales (units) 5,200 9,800 15,300
© The Institute of Chartered Accountants of India
7.5 Advanced Accounting
Selling price (` per unit) 40 45 50 Closing Stock (Units) 400 600 700
You are required to prepare departmental trading account of Brahma Limited assuming that the
rate of profit on sales is uniform in each case. (5 Marks, May, 2011) (IPCC)
Answer
Departmental Trading Account for the year ended 31st March, 2011
Particulars A B C Particulars A B C ` ` ` ` ` ` To Opening Stock
(W.N.4) 14,400 10,800 30,000
By Sales By Closing stock
(W.N.4)
2,08,000 9,600
4,41,000 16,200
7,65,000 21,000
To Purchases (W.N.2)
1,20,000 2,70,000 4,50,000
To Gross profit 83,200 1,76,400 3,06,000
2,17,600 4,57,200 7,86,000 2,17,600 4,57,200 7,86,000
Working Notes: (1) Profit Margin Ratio
Selling price of units purchased: ` Department A (5,000 units х ` 40) 2,00,000 Department B
(10,000 units х ` 45) 4,50,000 Department C (15,000 units х ` 50) 7,50,000 Total selling price of
purchased units 14,00,000 Less: P urchases (8,40,000) Gross profit 5,60,000 Profit margin ratio
Gross profit 5,60,000
= Selling 100 = 14,00,000
price × × 100 = 40%
(2) Statement showing department-wise per unit cost and purchase cost
Particulars A B C Selling price per unit (`) 40 45 50 Less: Profit margin @ 40% (`) (16) (18) (20)
Purchase price per unit (`) 24 27 30 No. of units purchased 5,000 10,000 15,000 Purchases
(purchase cost per unit x units purchased)
1,20,000 2,70,000 4,50,000
© The Institute of Chartered Accountants of India
Departmental Accounts 7.6
(3) Statement showing calculation of department-wise Opening Stock (in units)
Particulars A B C Sales (Units) 5,200 9,800 15,300 Add: Closing Stock (Units) 400 600 700
5,600 10,400 16,000 Less: Purchases (Units) (5,000) (10,000) (15,000) Opening Stock (Units)
600 400 1,000
(4) Statement showing department-wise cost of Opening and Closing Stock
Particulars A B C Cost of Opening Stock (` ) 600 х 24 400 х 27 1,000 х 30
14,400 10,800 30,000 Cost of Closing Stock (` ) 400 х 24 600 х 27 700 х 30
9,600 16,200 21,000
Question 5
M/s. AM Enterprise had two departments, Cloth and Readymade Clothes. The readymade
clothes were made by the firm itself out of the cloth supplied by the Cloth Department at its
usual selling price. From the following figures, prepare Departmental Trading and Profit & Loss
Account for the year ended 31st March, 2011:
Cloth Department `
Readymade Clothes Department ` Opening
stock on 1st April, 2010 31,50,000 5,32,000
Purchases 2,10,00,000 1,68,000 Sales 2,31,00,000 47,25,000 Transfer to Readymade Clothes
Department 31,50,000 - Manufacturing expenses - 6,30,000 Selling expenses 2,10,000 73,500
Rent & warehousing 8,40,000 5,60,000 Stock on 31st March, 2011 21,00,000 6,72,000
In addition to the above, the following information is made available for necessary consideration:
The stock in the Readymade Clothes Department may be considered as consisting of 75% cloth
and 25% other expenses. The Cloth Department earned a gross profit at the rate of 15% in
2009-10. General expenses of the business as a whole amount to ` 10,85,000.
(8 Marks, November, 2011) (IPCC)
© The Institute of Chartered Accountants of India
7.7 Advanced Accounting
Answer
Departmental Trading and Profit and Loss Account
for the year ended 31st March, 2011
Particulars Cloth (`)
Ready-
Total
Particulars Cloth
Ready- made
(`) Clothes (` )
(`)
made Clothes (`)
Total (`)
To Opening stock
31,50,000 5,32,000 36,82,000 By Sales 2,31,00,000 47,25,000 2,78,25,000
To Purchases 2,10,00,000 1,68,000 2,11,68,000 By Transfer
to
Ready- made Clothes Deptt.
31,50,000 - 31,50,000
To Transfer
from Cloth Department - 31,50,000 31,50,000
By Closing
stock 21,00,000 6,72,000 27,72,000
To Manufacturing
expenses - 6,30,000 6,30,000 To Gross
profit c/d 42,00,000 9,17,000 51,17,000
2,83,50,000 53,97,000 3,37,47,000 2,83,50,000 53,97,000 3,37,47,000 To Selling
expenses 2,10,000 73,500 2,83,500
By Gross
profit b/d 42,00,000 9,17,000 51,17,000
To Rent &
warehousing 8,40,000 5,60,000 14,00,000 To Net profit 31,50,000 2,83,500 34,33,500
42,00,000 9,17,000 51,17,000 42,00,000 9,17,000 51,17,000
General Profit and Loss Account
Particulars Amount (` ) Particulars Amount (` ) T
o General expenses To Unrealized profit (Refer
W.N.) To General net profit (Bal.fig.)
10,85,000 20,790 23,27,710
By Net profit 34,33,500
34,33,500 34,33,500
© The Institute of Chartered Accountants of India
Departmental Accounts 7.8
Working Note: Calculation of Stock Reserve Rate of Gross Profit of Cloth Department, for the
Gross Profit
year 2010-11 = Total Sales
x 100
``
( ) 42,00,000 × 100 2,31,00,000 + 31,50,000
× 100 = 16%
Closing Stock of cloth in Readymade Clothes Department = 75%
i.e. ` 6,72,000 x 75% = ` 5,04,000 Stock Reserve required for unrealized profit @ 16% on
closing stock
` 5,04,000 x 16% = ` 80,640 Stock reserve for unrealized profit included in opening stock of
readymade clothes @ 15% i.e.
(` 5,32,000 x 75% x 15%) = ` 59,850 Additional Stock Reserve required during the year = `
80,640 – ` 59,850 = ` 20,790.
Question 6
Department A sells goods to Department B at a profit of 20% on cost and Department C at 15%
profit on cost. Department B sells goods to A and C at a profit of 10% and 20% on sales
respectively. Department C sells goods to A and B at 15% and 10% profit on cost respectively.
Departmental managers are entitled to 10% commission on net profit subject to unrealized profit
on departmental sales being eliminated. Departmental profits after charging manager's
commission, but before adjustment of unrealized profit are as under:
` Department A 36,000 Department B 27,000
Department C 18,000 Stock lying at different departments at the end of the year are as below:
Department A Department B Department C
` ` ` Transfer from Department A - 7,200 5,750 Transfer from Department B 19,000 - 15,000
Transfer from Department C 4,600 3,300 -
Find out correct departmental profits after charging manager's commission.
(8 Marks, November 2012) (IPCC)
© The Institute of Chartered Accountants of India
7.9 Advanced Accounting
Answer
Calculation of correct Departmental Profit
Department A
Department B
Department C ` ` ` Profit after charging managers’ commission but before adjustment for
unrealized profit
36,000 27,000 18,000
Add back : Managers’ commission (1/9) 4,000 3,000 2,000 40,000 30,000 20,000 Less:
Unrealised profit on stock (Working
Note)
(1,950) (4,900) (900)
Profit before Manager’s commission 38,050 25,100 19,100 Less: Commission for Department
Manager @10%
(3,805) (2,510) (1,910)
Correct profit after charging manager commision 34,245 22,590 17,190
Working Note :
nrealised Profit on transfer to: Department A __
Department A Department B Department C Total ` ` `. ` U
7,200 x 20/120 = 1,200 5,750 x 15/115= 750 1,950 Department B 19,000 x 10% = 1,900 __ 15,000 x
20% = 3,000 4,900 Department C 4,600 x 15/115= 600 3,300 x 10/110= 300 __ 9 00
Question 7 Department A sells goods to Department B at a profit of 50% on cost and to
Department C at 20% on cost. Department B sells goods to A and C at a profit of 25% and 15%
respectively on sales. Department C charges 30% and 40% profit on cost to Department A and
B respectively. Stock lying at different departments at the end of the year are as under:
Department A Department B Department C ` ` ` Transfer from Department A - 45,000 42,000
Transfer from Department B 40,000 - 72,000 Transfer from Department C 39,000 42,000 -
© The Institute of Chartered Accountants of India
Departmental Accounts 7.10
Calculate the unrealized profit of each department and also total unrealized profit.
(4 Marks, May 2013) (IPCC)
Answer
Calculation of unrealized profit of each department and total unrealized profit
Dept. A Dept. B Dept. C Total ` ` ` ` Unrealized Profit of: Department A 45,000 x 50/150 =
15,000
42,000 x 20/120
= 7,000 22,000
Department B 40,000 x .25 = 10,000
72,000 x .15=
10,800 20,800 Department C 39,000 x 30/130 = 9,000
42,000 x 40/140 = 12,000
21,000
63,800
Question 8 Martis Ltd. has several departments. Goods supplied to each department are
debited to a Memorandum Departmental Stock Account at cost, plus a fixed percentage
(mark-up) to give the normal selling price. The mark-up is credited to a memorandum
departmental 'Mark-up account', any reduction in selling prices (mark-down) will require
adjustment in the stock account and in mark-up account. The mark up for Department A for the
last three years has been 25%. Figures relevant to Department A for the year ended 31st March,
2013 were as follows: Opening stock as on 1st April, 2012, at cost ` 65,000 Purchase at cost `
2,00,000 Sales ` 3,00,000 It is further ascertained that : (1) Shortage of stock found in the year
ending 31.03.2013, costing ` 1,000 were written off. (2) Opening stock on 01.04.12 including
goods costing ` 6,000 had been sold during the year and bad b een marked down in the selling
price by ` 600. The remaining stock had been sold during the year. (3) Goods purchased during
the year were marked down by ` 1,200 from a cost of
` 15,000. Marked-down stock costing ` 5,000 remained unsold on 31.03.13. (4) The
departmental closing stock is to be valued at cost subject to adjustment for mark-up
© The Institute of Chartered Accountants of India
7.11 Advanced Accounting
and mark-down. You are required to prepare : (i) A Departmental Trading Account for
Department A for the year ended 31st March, 2013
in the books of Head Office. (ii) A Memorandum Stock Account for the year. (iii) A Memorandum
Mark-up Account for the year. (12 Marks, November 2013) (IPCC)
Answer (i) Department Trading Account
For the year ending on 31.03.2013 In the books of Head Office Particulars ` Particulars ` To
Opening Stock 65,000 By Sales 3,00,000 To Purchases 2,00,000 By Shortage 1,000 To Gross
Profit c/d 58,880 By Closing Stock 22,880 3,23,880 3,23,880
(ii) Memorandum stock account (for Department A) (at selling price)
Particulars ` Particulars ` To Balance b/d
(` 65,000+25% of ` 65,000)
81,250 By Profit & Loss A/c
(Cost of Shortage)
1,000
To Purchases
(` 2,00,000 + 25% of ` 2,00,000)
2,50,000 By Memorandum Departmental
Mark up A/c (Load on Shortage) (` 1,000 x 25%)
250
By Memorandum Departmental
Mark-up A/c (Mark-down on Current Purchases)
1,200
By Debtors A/c (Sales) 3,00,000 By Memorandum Departmental
Mark-up A/c (Mark Down on Opening Stock)
600
By Balance c/d 28,200 3,31,250 3,31,250
(iii) Memorandum Departmental Mark-up Account
Particulars ` Particulars ` To Memorandum Departmental
Stock A/c (` 1,000 × 25/100)
250 By Balance b/d
(` 81,250 x 25/125)
16,250
© The Institute of Chartered Accountants of India
To Memorandum Departmental
Stock A/c
Departmental Accounts 7.12
` 2,50,000 x 25/125)
To Memorandum Departmental To Gross Profit transferred to
Stock A/c Profit & Loss A/c
1,200 By Memorandum Departmental
Stock A/c
50,000 To Balance c/d [(` 28,200 +
50,000
5,320
400*) x 25/125 - ` 4
00]
66,250 66,250 *[` 1,200 ×5,000/15,000] = ` 400
Working Notes: (i) Calculation
of Cost of Sales
` A Sales as per
Books 3,00,000 B Add: Mark-down in opening stock (given) 600 C Add:
mark-down in sales out of current Purchases
800
(` 1,200 x 10,000 /15,000) D Value of sales if there was no mark-down
(A+B+C) 3,01,400 E Less: Gross Profit (25/125 of ` 3,01,400) subject to Mark
Down
(` 600 + ` 800) (60,280) F Cost of sales (D-E) 2,41,120
(ii) Calculation of Closing Stock
` A
Opening
Stock 65,000 B Add: Purchases 2,00,000 C Less: Cost of Sales (2,41,120) D
Less: Shortage (1,000) E Closing Stock (A+B-C-D) 22,880
Question 9 State the basis on which the following common expenses, the benefit of
which is shared by all the departments is distributed among the departments: (i)
Rent, rates and taxes, insurance of building; (ii) Selling expenses such as discount,
bad debts, selling commission and other such selling
expenses;
© The Institute of Chartered Accountants of India
7.13 Advanced Accounting
(iii) Carriage Inward; (iv) Depreciation; (v) Interest on loan; (vi) Profit or loss on sale of
investment; (vii) Wages; (viii) Lighting and Heating Expenses. (4 Marks, November 2013)
(IPCC)
Answer
Allocation of Expenses
S.No. Expenses Basis 1 . Rent, rates and taxes, repairs,
insurance of building
Floor area occupied by each department (if given) other wise on time basis. 2. Selling expenses,
e.g., discount, bad debts, selling commission, and other such selling expenses
Sales of each department.
3. Carriage inward Purchases of each department. 4. Depreciation Value of assets of each
department
otherwise on time basis. 5 Interest on loan Utilisation of loan amount in each department (if can
be identified), otherwise in combined P& L A/c. 6 Profit & loss on sale of investment Value of
investments sold in each department (if value can be identified), otherwise in combined P& L
A/c. 7 Wages Time devoted to each department 8. Lighting and Heating expenses (eg. energy
expenses)
Consumption of energy by each department.
Question 10
Department P sells goods to Department S at a profit of 25% on cost and to Department Q at a
profit of 15% on cost. Department S sells goods to P and Q at a profit of 20% and 30% on sales
respectively. Department Q sells goods to P and S at 20% and 10% profit on cost respectively.
Departmental Managers are entitled to 10% commission on net profit subject to unrealized profit
on departmental sales being eliminated. Departmental profits after charging Manager's
commission, but before adjustment of unrealized profits are as below:
© The Institute of Chartered Accountants of India
Departmental Accounts 7.14
` Department P 90,000 Department S 60,000 Department Q 45,000
Stock lying at different Departments at the end of the year are as below:
Figures in ` DEPARTMENTS P S Q Transfer from P - 18,000 14,000 Transfer from S 48,000 -
38,000 Transfer from Q 12,000 8,000 -
Find out correct Departmental Profits after charging Managers' Commission.
(8 Marks, May, 2014) (IPCC)
Answer
Calculation of correct Departmental Profits
Department P (` )
Department S (` )
Department Q ( `) Profit after charging Manager’s Commission
90,000 60,000 45,000
Add: M anager’s Commission (1/9) 10,000 6,667 5,000 1,00,000 66,667 50,000 Less: Unrealised
profit on Stock (WN) (5,426) (21,000) (2,727) Profit Before Manager’s Commission 94,574
anager’s Commission 10% (9,457) (4,567) (4,727) Correct Profit after
45,667 47,273 Less: M
Manager’s Commission
85,117 41,100 42,546
Working Notes:
Department P (` )
Department S (` )
Department Q ( `)
Total (`) Unrealized Profit of: Department P - 25/125X18,000 =3,600
15/115X14,000 =1,826
5,426
© The Institute of Chartered Accountants of India
Department Q 20/120X12,000
7.15 Advanced Accounting =2,000
2,727
Department S 20/100X48,000
Question 11
=9,600
0/110X8,000
- 30/100X38,000
727
=11,400
0/110X8,000
21,000
727
21,000
Mega Ltd. has two departments, A and B. From the following particulars, prepare
departmental Trading A/c and General Profit & Loss Account for the year ended 31st
March, 2014.
Particulars Amount (`)
Department A Department B Opening
stock as on 01.04.2013 (at cost) 70,000 54,000 Purchases 3,92,000 2,98,000
Carriage Inward 6,000 9,000 Wages 54,000 36,000 Sales 5,72,000 4,60,000
Purchased Goods Transferred: By Department B to A 50,000 By Department A to
B 36,000 Finished Goods Transferred: By Department B to A 1,50,000 By
Department A to B 1,75,000 Return of Finished Goods: By Department B to A
45,000 By Department A to B 32,000 Closing Stock: Purchased Goods 24,000
30,000 Finished Goods 1,02,000 62,000
Purchased goods have been transferred mutually at their respective departmental
purchase cost and finished goods at departmental market price and that 30% of the
closing finished stock with each department represents finished goods received from
the other department.
(8 Marks, November, 2014)
(IPCC)
© The Institute of Chartered Accountants of India
Departmental Accounts 7.16
Answer
Departmental Trading Account in the books of Mega Ltd. for the year ended 31st March,
2014
Particulars Department A (`)
( ` )
Department B
Particulars Department A (`)
( ` ) To Opening Stock 70,000 54,000 By Sales 5,72,000 4,60,000 To Purchase 3,92,000
Department B
2,98,000 By Transfer: To Carriage Inward 6,000 9,000 Purchased
Goods
36,000 50,000
To Wages 54,000 36,000 Finished
Goods
1,30,000 1,18,000
To Transfers: By Closing Stock:
Purchased Goods
50,000 36,000 Purchased
Goods
24,000 30,000
Finished** Goods
1,18,000 1,30,000 Finished*
Goods
1,02,000 62,000
To Gross Profit c/d 1,74,000 1,57,000
8,64,000 7,20,000 8,64,000 7,20,000 * Finished goods from other department included in
closing stock
Particulars Department A (` ) Department B (`) Stock of Finished Goods 1,02,000 62,000 Stock
related to other department 30,600 18,600 (30% of Finished Goods)
** Net transfer of Finished Goods by Department A to B = ` (1,75,000 – 45,000) = `1,30,000
Department B to A = ` (1,50,000 – 32,000) = `1,18,000
General Profit and Loss A/c For the year ended 31st March, 2014
Particulars Amount (`) Particulars Amount (`) To Provision for unrealised profit By Gross Profit
b/d: included in closing stock: Department A 1,74,000 Department A (W.N.2) 8,311 Department
B 1,57,000 Department B (W.N.2) 4,611 To Net Profit 3,18,078
3,31,000 3,31,000
© The Institute of Chartered Accountants of India
7.17 Advanced Accounting
Working Notes 1. Calculation of ratio of gross
profit margin on sales
Particulars Department A (` ) Department B (`) Sales 5,72,000 4,60,000 Add:
Transfer of Finished
Goods 1,75,000 1,50,000 7,47,000 6,10,000 Less: Return of Finished
Goods (45,000) (32,000) 7,02,000 5,78,000 Gross Profit 1,74,000 1,57,000
1,57,000
Gross Profit margin = = 1,74,000
x100 24.79% 7,02,000 =
x100 27.16%
5,78,000
2. Unrealised profit included in the closing
stock
Department A = 27.16% of ` 3 0,600 (30% of Stock of Finished Goods `
1,02,000) = ` 8311.00 Department B = 24.79% of `18,600 (30% of Stock of
Finished Goods ` 6 2,000) = ` 4611.00
© The Institute of Chartered Accountants of India
